Defining the benefits of generations to come

pensions

Although defined benefit schemes in the private sector are mostly closed to new members these will continue to be run until all the existing members have been paid out

Defined benefit (DB) schemes are gradually dwindling in number as most private sector employers now offer new employees defined contribution plans. However, it will be a while until DB totally disappears because these schemes will not shut down until all members are paid out. John Ashcroft, head of strategy at the Pensions Regulator, explains to Investment Week what is happening to these schemes, their future outlook and their importance in combating the pension crisis. What are the main provisions of the new scheme funding framework for DB schemes? At their first annual valuation a...